Energy bill ready for Senate floor could pass costs to customers

The Senate Fiscal Policy Committee advanced a measure that seeks to diversify Florida’s energy sources, including renewable natural gas. But it could pass costs on to customers.

St. Petersburg Republican Sen. Nick DiCeglie presented the bill (SB 1574) and explained that there needs to be a push for Florida to be more energy resilient.

The U.S. Energy Information Administration’s most recent data shows that Florida is the second-largest producer of electricity in the nation after Texas. In 2024, 75% of Florida’s electricity was generated by natural gas.

“As Florida’s economy, energy demands and population continue to grow, we need to recognize energy solutions that are diverse, secure, affordable and reliable,” DiCeglie said. “Florida currently uses seven times more energy than it actually produces, causing us to rely heavily on other states to fill the gaps.”

DiCeglie explained that to advance Florida’s energy solutions, the bill would direct the Public Service Commission (PSC) to establish an experimental mechanism for energy infrastructure investments in gas, specifically renewable natural gas, also known as RNG.

“This would allow a public utility to request recovery of costs for RNG infrastructure in the state of Florida,” DiCeglie said. “The bill’s intention is to encourage utilities to invest in and advance Florida’s energy resources to be more resilient, while also providing a waste solution that is an economic benefit to its communities.”

One amendment was adopted that clarifies that production of RNG mentioned in the bill is within the state of Florida.

“There was a question in the last committee stop, so that clarifies that, and then directs the PSC to adopt rules that ensure public utility customers benefit from tradable energy credits and tax-savings from these investments and address the revenue from gas sales,” DiCeglie said. “This is modeled after the Virginia law, which proved to lower customer bills.”

Miami Gardens Democratic Sen. Shevrin Jones raised a question around how the legislation will impact customer bills.

“Do you see any impact on residents, whether or not rates will go up or down with this legislation?” Jones asked.

In response, DiCeglie said that the bill speaks to RNG, which is a biomethane derived from biological sources and organic matter.

“So, this is the first step in introducing a new energy source to the state of Florida, very similar to natural gas several years ago,” DiCeglie said. “So, I think, you know, this does not correlate to an increase in rates when it comes to general electric bills that we enjoy.”

DiCeglie reiterated that the bill strictly speaks to RNG, not natural gas, which is obtained by drilling and the use of fossil fuels and is not renewable.

“It’s a very unique and specialized energy, if you will,” DiCeglie said. “And again, the amendment that we laid out today, really makes sure that the PSC understands the intent of this legislation where if there is an opportunity to decrease the cost of renewable natural gas, through the rate process with the PSC, this clearly lays that out.”

However, in the bill’s analysis, it states in the measure’s fiscal impact statement that public utilities “will likely expand their use and sale of RNG” and adds that the costs would be “authorized to be passed through to the utilities’ customers.”

Jacksonville Democratic Sen. Tracie Davis asked what experimental mechanisms would be used by the PSC to determine rates.

“Could you just take a moment to explain what that experimental mechanism is, and are there costs associated now that the PSC is required to do this?” Davis asked.

DiCeglie explained this is the first step in introducing an energy source to Florida and noted that the experimental mechanism allows the PSC to have the ability to conduct limited scope pilot programs, which makes experimental rates for a limited geographical area for a limited period of time.

“They’re going to get a whole bunch of data from the utility company, in this case, the producer of RNG,” DiCeglie said. “They’re going to collect that data and they’re going to determine exactly what those rates are going to be, where the geographical area is going to be, and as they continue getting that data, they can stop it dead in its tracks if they find that it’s not in the public’s interest or they can continue it because its successful.”

In closing, DiCeglie said this was the third time he has introduced similar legislation.

“Third time is the charm,” DiCeglie said. “I do think this one is even more consumer friendly than the previous ones, and those were really consumer friendly.”

The bill will now make its way to the Senate floor. A companion bill (HB 1239) sponsored by Bartow Republican Rep. Jennifer Kincart Jonsson is currently making its way through committees.